Signing up for cheaper electricity
After waffling between “100-percent wind” electricity and a cheaper deal for dirty kilowatts from Washington Gas Energy Services, the Hancock household signed up for the WGES package – 10.8 cents per kilowatt hour for three years.
In doing so we’ll save about $30 a month this summer, compared with the standard Baltimore Gas & Electric summertime price (12.7 cents) (clicking on this BGE rate sheet will show a generation price of 12.242 cents; add another .4 cent and change in transmission cost for a price to compare of 12.7) and lesser amounts in ensuing months. We’ll be protected if wholesale electricity prices spike back up before 2012.
In rejecting the wind deal, we took the advice of environmental groups saying your first move to go green should be reducing energy use, not burning energy as usual and switching sources. We’ll take the savings from the WGES deal – and then some – and invest in insulation and other upgrades to cut consumption, getting big tax credits in the bargain.
Wind-energy deals support the generation of wind kilowatts somewhere, but not necessarily in Maryland. And they don’t necessarily cause overall carbon emissions to go down, says the Environmental Defense Fund. The only way to do that is to cut consumption or buy offsets, which effectively pay somebody else for cutting his/her emissions.
Comments
Jay,
According to my calculations, you are using over 1500 KWh during the summer. You definitely have room for improvement. I guess we will have to take your word that you aren't going to pocket the difference between WGES and BGE.
Anyway, are you signing up for one or two years with BGE?
Posted by: Larry | April 10, 2009 8:04 AM
Larry, you're correct. Last year we used 1333 kwh in August, 1749 kwh in July, 1325 in June. We took the 3-year WGES deal.
Posted by: Jay | April 10, 2009 9:29 AM
WGES has great deals on natural gas too. If you use gas heat, cooking, water, etc., you can definitely save money by switching to them.
I signed for one year @ .69/therm, way below BGE's March rate of .84/therm. Even their 2 year rate is lower at .78/therm.
Posted by: Renee Musicus | April 10, 2009 9:49 AM
Jay, it is interesting that you almost have to apologize for taking advantage of the cheaper energy option to the point of promising to use the savings to reduce your energy consumption.
I too signed up for 3 years of dirty energy from WGES, but I think I may use my savings for a new tv
Posted by: Robert of Cross Keys | April 10, 2009 3:04 PM
Jay,
You have misunderstood what EDF was saying. They are talking about the controversy around selling RECs as carbon reductions in and of themselves, which is a market issue unrelated to your dilemma. They're saying that if you buy renewable energy IN ADDITION to what you were going to already use, then that wouldn't reduce emissions, which is common sense. If you had bought wind energy instead of the coal-fired stuff you absolutely would have eliminated ALL of the carbon emissions associated with your home electricity, which is also common sense. You made the wrong call supporting coal, which kills 30,000 americans a year, destroys coral reefs and causes global warming. That's not to mention the mountaintop removal mining which is destroying Appalachia. Sorry, but if you care about other people in the world, the wind power would have been better.
Posted by: Andrew | April 10, 2009 10:19 PM
Jay,
Keep in mind that Dereck Davis' Economic Matters Committee is the only thing standing between you and your WGES deal. Hopefully he will kill the de-regulation bill in committee, because if it passes your deal is gone and you're back to BGE's SOS. You're doing people a great service by publicizing the ability to shop. Unfortunately the political class wants to take it away for cheap political gain. They've all admitted it does nothing in the short term and it will be years before any supposed benefit would be seen, if at all. The best thing people can do is shop, either directly with a supplier or through one of the residential purchasing cooperatives being formed by many local chambers of commerce.
Posted by: Big Mike | April 11, 2009 10:58 PM
Jay,
I am considering the same plan. I presently use 2500 to 3000 kwh during the summer months, so this proves to be what I consider a substantial savings. I feel EVERYONE should switch to these lower rates. Competition is what controls rates. Who knows....maybe BG&E will actually have to do a "Chrysler/GM" and actually re-evaluate their way of doing business.
Spread the word!
Posted by: Jon | May 16, 2009 9:26 PM